TD Cowen Reiterates Buy Rating for Ares Management, Targets $153
TD Cowen maintains its buy rating on Ares Management, targeting a price of $153, a 36.04% upside from the current price.
Key Points
- TD Cowen reiterated its buy rating for Ares Management, setting a price target of $153 on June 23, 2026.
- TD Cowen's $153 price target implies 36.04% upside from Ares Management Corporation's ($ARES) current $112.47 share price.
- Shares of Ares Management traded near $125.9 on Tuesday with a market cap of approximately $28.39 billion.
- Ares Management sees significant institutional interest with Vanguard Capital Management opening a new position.
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TD Cowen reiterated its buy rating on Ares Management Corporation (NYSE:ARES) on June 23, 2026. Analyst Bill Katz maintained the price target at $153, signaling continued confidence in the asset manager's prospects.
TD Cowen vs. the S&P 500
Hypothetical, simulated performance of disclosed positions vs. the S&P 500. Not realized profit and not investment advice. Past performance does not indicate future results. Details.
Other Institutional Activity in Ares Management
Ares Management has seen various institutional moves recently. Vanguard Capital Management LLC opened a new position with 13,489,463 shares, valued at around $1.47 billion. Meanwhile, Wellington Management Group LLP significantly increased its holdings by 5,333,577 shares, bringing its total to 11,162,802 shares worth approximately $1.22 billion, marking a 91.5% increase. Capital World Investors also boosted its position by 1,654,954 shares to a total of 11,784,120 shares, valued at about $1.29 billion, a 16.3% increase. In contrast, BlackRock, Inc. slightly reduced its stake by 40,317 shares, holding 16,169,065 shares valued at $1.76 billion.
Ares Management Corporation Stock Down 21.1%
Shares of Ares Management traded near $125.9 on Tuesday. The company has a market cap of about $28.39 billion and a P/E ratio of 58.0, with a forward P/E of 17.2. The stock's beta is 1.516, indicating a higher volatility compared to the market. Its 52-week range is from $95.8 to $195.26, with a 50-day moving average of $122.38 and a 200-day moving average of $141.09.
$ARES price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
Ares Management reported revenues of $5.91 billion with a revenue growth of 28.3%. The company achieved an EPS of $2.17, a net margin of 10.54%, and a return on equity of 14.18%. The next earnings report is expected on July 30, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
2 target raises vs 2 cuts.
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EPS & revenue
EPS missed estimates by 9.0%. Revenue beat estimates by 27.0%.
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Profit surprise
EBITDA missed by 7 percent. Operating income beat by 21 percent.
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Pre-earnings setup
Bar was high, analysts already very bullish.
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Analyst signal
2 target raises, 2 target cuts.
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Earnings quality
Gross margin up 56.5 points. Operating margin up 17.0 points. Positive free cash flow.
Earnings Call Summary
First quarter revenue of 1.5 billion dollars beat expectations and AUM grew 18 percent to 644 billion dollars. Management fees exceeded 1 billion dollars for the first time in company history as FPAUM grew 19 percent. The firm raised record 30 billion dollars in gross capital in Q1 and deployed over 32 billion dollars despite market headwinds from geopolitical issues and slowing U.S. M&A deal counts. Dividend increased over 20 percent reflecting confidence in earnings power, though EPS of 1.24 dollars missed consensus of 1.32 dollars due to lower-than-expected realized performance income timing into later quarters.
Guidance Ares expects full year fee-related earnings growth of 16 to 20 percent and realized income growth of 20 to 25 percent, with margin expansion toward the upper end of 0 to 150 basis points. Management expects another record fundraising year and strong deployment across credit, real assets and secondaries as market dislocation creates better investment terms.
Underwhelming report. Mixed results that may lead to slightly lower expectations.
Dividend
Ares Management offers an annual dividend rate of $5.40, yielding 4.18%. The dividend payout ratio stands at 217.05%.
Insider Buying and Selling at Ares Management Corporation
Recent insider activity at Ares Management includes Co-President Blair Jacobson selling 8,000 shares on June 3, 2026. On the buying side, Judy Olian purchased 480 shares at an average price of $124.43 on February 20, 2026, and Ashish Bhutani bought 10,000 shares at $126.61 on February 6, 2026.
Analysts Set New Price Targets
On June 23, 2026, TD Cowen maintained a buy rating with a $153 price target. Earlier, on May 18, TD Cowen reiterated a buy rating with a $144 target. Oppenheimer also reiterated a buy on May 4, setting their target at $146.
About Ares Management
Ares Management Corporation, headquartered in Los Angeles, California, is a financial services firm specializing in alternative asset management. It operates through various segments including Direct Lending, Private Equity, and Real Estate, providing financing and investment solutions across multiple sectors and geographies. Led by CEO Michael J. Arougheti, Ares employs over 4,200 people worldwide.
Bottom Line
Ares Management continues to attract attention from analysts and institutional investors, reflecting confidence in its growth potential. While TD Cowen's reiteration of a buy rating is promising, investors should remember that these ratings are based on past performance and projections. Always consider the latest market conditions and company developments.
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